A Manager Wishes to Build a 3-Sigma Range Chart for a Process

question 51

Multiple Choice

A manager wishes to build a 3-sigma range chart for a process. The sample size is five, the mean of sample means is 16.01, and the average range is 5.3. From Table S6.1 in the text, the appropriate value of D₃ is 0, and D₄ is 2.115. The UCL and LCL for this range chart are

• A) 33.9 and 11.2.
• B) 33.9 and 0.
• C) 11.2 and 0.
• D) 6.3 and 0.
• E) 31.91 and 0.11.

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Definitions:

Perfectly Elastic Demand

Perfectly elastic demand is a market scenario where the demand for a product can drastically change (increase or decrease) at the slightest change in price, essentially to infinity.

Patents

Legal documents granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Innovation Incentives

Mechanisms or policies designed to encourage the development and implementation of new ideas, products, or methodologies.

Monopoly Power

The degree of control a company has over a market, enabling it to set prices or exclude competition.